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2018 (5) TMI 1102 - AT - Income TaxLevy of penalty u/s.271(1)(c) - non specification of charge - AO initiated the penalty proceedings for the offence of ‘concealing the particulars of income’ and levied the same for furnishing inaccurate particulars' - Held that:- It is a case where the AO did not have clarity of thought and AO suffered from ambiguity in his mind with regard to the applicable limb of clause (c) of section 271(1) to the facts of the case. Therefore, we find the penalty order of the AO falls short of legal requirement on the issue of recording of satisfaction. Initiation of penalty proceedings is made for one limb and the penalty was levied for other limb. Such penalty order is unsustainable in law legally. The manner of initiating and levying of penalty without making reference to the specific limb of clause (c) is unsustained. AO is under obligation to specify the correct limb at the time of initiation as well as at the time of levy of penalty. Therefore, the penalty levied by the AO and confirmed by the CIT(A) is unsustainable on technical grounds. - Decided in favour of assessee.
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